Eaton to Spin Off Mobility Group in Dana Merger

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An announcement from Eaton ( (ETN) ) is now available.

Eaton, the intelligent power management group, is accelerating its portfolio shift toward higher-growth, higher-margin electrical and aerospace businesses that are tied to megatrends such as electrification, AI-driven data centers, infrastructure modernization and increased defense and aerospace spending. The move builds on recent acquisitions in aerospace electronic controls and liquid cooling for data centers, reinforcing Eaton’s strategy to concentrate capital on businesses with stronger structural growth and profitability profiles.

On June 10–11, 2026, Eaton agreed to separate its Mobility Group and combine it with Dana Incorporated in a Reverse Morris Trust, creating an engineered vehicle solutions company valued at more than $10 billion and assigning about $5.1 billion in value to Eaton’s Mobility assets. Eaton will receive roughly $1.1 billion in cash and its shareholders will own at least 50.1% of the combined Dana-led company, which targets about $11 billion in pro forma revenue, $1.7 billion in 2026 adjusted EBITDA including $250 million of run-rate cost synergies, and a broader global platform in drivetrain, propulsion and electrification technologies; the deal, unanimously approved by both boards, is expected to close in the first quarter of 2027 and be immediately accretive to Eaton’s organic growth and margins while giving its investors continued upside via majority ownership of the new vehicle mobility powerhouse.